113Addition of animals to herdU.K.
This section has no associated Explanatory Notes
(1)This section applies for the purpose of calculating the profits of the trade if an animal is added to the herd, unless it replaces another animal in the herd.
(2)No deduction is allowed for the cost of the animal.
(3)If, immediately before it was added to the herd, the animal was part of the farmer's trading stock, the balancing amount is brought into account as a receipt.
(4)“The balancing amount” means—
(a)in the case of an animal bred by the farmer, the cost of breeding the animal and rearing it to maturity, and
(b)in any other case, the sum of the initial cost of acquiring the animal and the cost (if any) incurred by the farmer in rearing the animal to maturity.